Sharechat Logo

Moderate gains for NZ dollar


Wednesday 17th August 2011

Text too small?

The New Zealand dollar made moderate gains as it followed the track of equities in the United States.

At 8am the kiwi was at US83.58c from US83.35c at 5pm, and lifted to 0.58 euros from 0.5777.

ANZ said the NZ dollar had drifted toward the US82.80c support level, only to bounce off it and move in tandem with US equities once that market opened.

"The NZD seems happy to just follow equity moves, and understandably so given the lack of any domestic drivers at present. We can expect more of the same today," ANZ said.

The euro dropped against the US dollar as highly anticipated proposals from French and German leaders failed to shore up investor confidence in the euro zone.

French President Nicolas Sarkozy and German Chancellor Angela Merkel proposed a tax on financial transactions and closer joint governance of economic policy to stop the debt crisis in Europe. They did not propose an increase to the euro zone bailout fund or selling euro zone bonds.

Against the Australian dollar, the kiwi edged up to A79.79c at 8am from A79.53c from 5pm, and also made small headway to 64.16 yen from 64.04. The trade weighted index lifted to 71.69 from 71.48.

ANZ said that after the release of Reserve Bank of Australia minutes yesterday, the market was continuing to price in around 130 basis points of Australian interest rate cuts over 12 months. That was enough to see the Australian dollar underperform the New Zealand currency.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar gains on G20 preference for growth
NZ dollar dips as Wellington CBD checked for quake damage
NZ dollar gains, bolstered by RBA minutes, strong dairy prices
NZ dollar falls after central bank says it may scale up currency intervention
NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street
NZ dollar trades little changed as US budget talks bear down on deadline
NZ dollar falls with equities on view US to sail over fiscal cliff
NZ dollar weakens as fiscal cliff looms, long bets unwind
NZ dollar sinks to three-week low as equities fall, fiscal talks in focus
NZ dollar slips as fiscal cliff talks grind slower in Washington